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Consent to Let refused due to initial purchase being under 5% Help to Buy scheme
Comments
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She seems to be between a rock and a hard place.FattMern said:
She doesn't think she'll be able to get a remortgage as she hasn't been working for ~6 monthsele_91 said:I think I do actually remember there being some small print regarding letting the property, as I considered it but ended up just selling. Would it be an option to remortgage and repay the early charge? Not ideal but she would at least keep the asset and potentially get a better rate with more equity.
Why don't you let your new place out, and move in with her?No reliance should be placed on the above! Absolutely none, do you hear?0 -
Her place is too small, and she needs a change of environment/locationGDB2222 said:
She seems to be between a rock and a hard place.FattMern said:
She doesn't think she'll be able to get a remortgage as she hasn't been working for ~6 monthsele_91 said:I think I do actually remember there being some small print regarding letting the property, as I considered it but ended up just selling. Would it be an option to remortgage and repay the early charge? Not ideal but she would at least keep the asset and potentially get a better rate with more equity.
Why don't you let your new place out, and move in with her?0 -
Obviously, what you want is some way of getting consent to let. That's not been forthcoming, which narrows your choices.
One obvious way forward is simply for her to let the place without consent. I'm not recommending that, for obvious reasons. Or leave the place empty. Or you move in there. Those seem to be the only options.
I assume that a BTL mortgage would be impossible? In any case, they have higher interest rates, and there's the ERC.
No reliance should be placed on the above! Absolutely none, do you hear?0 -
'Paperwork refers to a Mortgage Variation, and does confirm that the original mortgage conditions apply' - not sure if this is entirely true, I managed to get around this by speaking the lender
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Normally standard residential mortgage contracts have clauses that state that CTL is granted purely on at the discretion of the lender. Lender sets the rules and says whether it's a yes/no decision. There's no rights for the borrower. CTL is not a back door route route to obtaining a BTL mortgage. CTL is in the mortgage contract to allow for a temporary change in circumstances.FattMern said:
There's nothing I can see in the original mortgage paperwork that states that Consent to Let can never be granted.Deleted_User said:although she is not on the same fixed terms, she is on the same mortgage with the same mortgage conditions. Have you read the terms and conditions applicable at the time to see if it says anything?
Unfortunately if the lender declines the application it's just tough. There's no appeal process. A different approach needs to be considered.
She's currently not working
Certainly not helpful in terms of the application. Reliance on rent to pay the mortgage and other bills is a recipe for financial disaster.
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Just rent it anyway. Or they can move in with lodgers because she will also be living there but staying over at yours often..0
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not being pedantic, but no one is forcing her to do anything here. She is making a choice to move. The lender has the right to refuse permission to rent it out.FattMern said:which is ironic considering they may be forcing her to do this by refusing Consent to Let.)
She can always sell the property and pay the ERC. I presume she doesn't want to do that though but ultimately thats her decision to not pay that ERC just in the same way its the lenders decision to not allow it to be rented. There is no coercion here.5 -
You know full well they wouldn’t be lodgers.steve866 said:Just rent it anyway. Or they can move in with lodgers because she will also be living there but staying over at yours often..0 -
Think options are look to get a BTL mortgage and pay ERC which cant be that high on 88k mortgage and 18months left. or sell the place0
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How many bedrooms does it have? Could a lodger cover the mortgage allowing her a change of scenery?0
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